Luxury goods momentum makes LVMH and Hermes stocks worth investing in, with Hermes posting a 16% YoY sales increase fueled by strong Asia-Pacific demand. When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Regardless of where the markets are headed, investors may want to own companies that offer some sense of certainty in terms of cash flows and company fundamentals. That’s where Morningstar’s Best Companies to Own list comes in. The companies that make up this list have significant competitive advantages. We believe the best companies have predictable cash flows and are run by management teams that have a history of making smart capital-allocation decisions. Nasdaq-listed AI startups SoundHound AI and BigBear.ai are emerging as speculative growth stocks worth investing in, with SoundHound’s quarterly revenue doubling on expanding speech tech adoption.
